Foundation Established in 2008 Embezzled 41 Million 900 Thousand Dram

Based on information received by the Anti-Corruption and Economic Crimes Department, factual data have been obtained indicating that a foundation, created in June 2008 to provide social services to individuals with mental disabilities, psychological disorders, or physical disabilities, as well as to drug addicts and alcoholics, primarily received funding from its U.S. corporation, with additional funding from the Ministry of Labor and Social Affairs starting from early 2018.

The director of the foundation, endowed with regulatory and organizational powers, including authorization to manage financial resources, allegedly organized and executed a series of financial transactions from 2014 to 2021 with the intent to embezzle funds. During this period, more than 41 million 900 thousand dram was misappropriated.

In particular, to ensure the normal operation of the foundation, in the presence of vehicles and manager-drivers, the director signed an indefinite contract in December 2014 with a company providing passenger transport services for the provision of taxi vehicles for around-the-clock service at the request of the foundation's staff. In September 2018, he signed two similar service contracts in the capacity of an individual with a tour organization company owned by his spouse.

Despite no actual services being rendered by the company owned by the director’s spouse and only partial services being provided by the first company, approximately 8 million dram was transferred to these companies' accounts from the foundation's financial resources between 2016 and 2021.

Additionally, the director entered into two contracts with a supplier for the provision of food, hygiene supplies, economic goods, and stationery with a company and an individual owning an individual enterprise at different dates. Under these agreements, the supplier delivered goods worth only 15 million 700 thousand dram between 2018 and 2021, while the foundation transferred over 49 million 600 thousand dram to the accounts of the supplier companies based on invoices sent via email, resulting in a significant embezzlement of around 33 million 916 thousand dram through cash withdrawals and return of cash.

A criminal case has been initiated at the Anti-Corruption and Economic Crimes Department, which has been forwarded to the Prosecutor General's Office to determine the investigative jurisdiction.